Yield Protocol launches on Arbitrum
Yield Protocol is excited to be launching on Arbitrum One mainnet. You can get started here: https://app.yieldprotocol.com.
Arbitrum is a layer 2 optimistic roll-up solution for Ethereum designed to alleviate Ethereum’s high gas fees without sacrificing security. According to L2Fees, users will pay significantly less transaction costs for interacting with smart contracts when compared to Ethereum mainnet.
To start enjoying the benefits of Arbitrum, head over to the official token bridge at https://bridge.arbitrum.io/. Once you’ve bridged some assets over, visit app.yieldprotocol.com and select the Arbitrum network to start your layer 2 fixed rate lending and borrowing journey.
Building Liquidity on Layer 2
Since the Yield Protocol deployment on Arbitrum is separate from the Ethereum mainnet instance, liquidity is also separate as well. Users are encouraged to contribute liquidity in the USDC or Dai pools to the new layer 2 instance and start earning returns from lenders and borrowers. This will help Yield Protocol provide competitive rates and make borrowing USDC and Dai more attractive.
Differences Between Layer 1 and Layer 2
The deployments of Yield Protocol on layer 1 and layer 2 are very similar. One difference is the behavior after maturity for a loan series. When a fixed duration loan expires, a variable rate is charged to the borrower. On Ethereum mainnet, that rate is determined by Compound’s variable rate. On Arbitrum, the post-maturity rate is set by governance because Compound isn’t deployed on Arbitrum. Other than this minor difference, users should not expect major changes.
New Collateral Types
Yield Protocol on Arbitrum will be customized for the needs of Arbitrum users. This means using different forms of collateral and providing different assets for borrowing. To start, the only collateral type available on Arbitrum will be Arbitrum Ether (AETH). We are always looking for new and interesting collateral types to add to the Yield Protocol. If you have any ideas or suggestions please reach out to us via Discord.
Getting Started
To start using Yield Protocol’s Arbitrum instance, head over to app.yieldprotocol.com, connect your wallet, and select Arbitrum from the dropdown on the bottom right of your screen.
